GOOD GOVERNANCE AND RULE OF LAW EFFECT ON GDP GROWTH: LESSONS FOR EMERGING ECONOMIES

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Esat Durguti
https://orcid.org/0000-0002-5982-3664
Avni Alidemaj
https://orcid.org/0000-0002-8161-3874
Anatolijs Krivins
https://orcid.org/0000-0003-1764-4091

Abstract

The overall aim of this article is to explore the effect of governance parameters on gross domestic product (GDP) in the 15 countries of the European Union (EU15) as well as the 6 countries of Southeast Europe (SEE6). The research employed the dynamic methodology generalized methods of moments (GMM) to explore the data gathered from the World Bank and the Global Economy database stretching 2000 - 2022, correspondingly 2008 - 2022. Our analyzed result for EU15 confirms that regulatory quality (RQ), government effectiveness (GE), and rule of law (RL) positively influence GDP; instead, control of corruption (CC) negatively influences GDP. The results obtained for SEE6 reveal that GE and CC positively influence GDP, but instead, the RL negatively influences GDP. Additionally, RQ in the SEE6 instance has shown an insignificant influence on GDP. Unfortunately, the study could not cover every country in both panel groups because of data limitations. Regarding the study’s conclusions, increased dedication to applying and undertaking reform measures for the key governance indicators for SEE6 countries would be helpful. These insights may raise the need to create specific mechanisms for the RL and CC. Compared to other research, the novelty and originality of the present research lies in the fact that it used panel data via the dynamic GMM approach to explore the role of improving government quality metrics in GDP.

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How to Cite
Durguti, Esat, Avni Alidemaj, and Anatolijs Krivins. 2024. “GOOD GOVERNANCE AND RULE OF LAW EFFECT ON GDP GROWTH: LESSONS FOR EMERGING ECONOMIES”. Journal of Liberty and International Affairs 10 (1):37-60. https://doi.org/10.47305/JLIA24101041d.
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Author Biographies

Esat Durguti, Faculty of Economics, University Isa Boletini - Mitrovicë, Kosovo

Esat DURGUTI, is an Associate Professor at the University Isa Boletini - Mitrovica, within the Faculty of Economics. He's been a professor of financial management, financial markets and institutions, corporate finance, and financial accounting since 2016.The field of interest for scientific research is financial economics, the financial industry with a focus on banks and insurance companies, accounting, SME financing, etc. Until now Mr. Durguti has published over 35 scientific research with international reviews. Mr. Durguti is on the editorial board and reviewer in the journals: Cogent Economics & Finance, Cogent Business & Management, Journal of Liberty and International Affairs, etc.Mr. Durguti has more than 10 years of experience in the banking industry and the field of accounting, and since 2016 he has founded the Company E&E Consulting.

Avni Alidemaj, Faculty of Law, Universum International College - Prishtina, Kosovo

Avni H. ALIDEMAJ is an Assistant Professor in the fields of law and political science at Universum International College in Pristina (Kosovo). He completed his undergraduate and postgraduate studies in legal sciences and public administration in Pristina and obtained his advanced legal education at Ohio Northern University in the USA. Whereas he pursued his PhD studies at the University of Southeast Europe in North Macedonia. He has taught courses in public administration and legal sciences at various universities in Kosovo and has authored a multitude of articles in international scientific journals pertaining to administrative law and public administration.

Anatolijs Krivins, Department of Law, Management Science, and Economics, Daugavpils University, Latvia

Anatolijs Krivins is an Associate Professor in the Department of Law, Management Science and Economics at Daugavpils University (Latvia), and an expert at Latvian Council of Science. His research interests are in the areas of public procurement and public administration, corporate reorganization, municipal contracts and bankruptcies. Has published more than 60 scientific articles, which are indexed in internationally cited databases, and also regularly participates with reports in international scientific conferences - including in Vienna (Austria), Nalenczow (Poland), London (Great Britain), Rome (Italy), Stuttgart (Germany), Paris (France), Munich (Germany), Madrid (Spain), Brussels (Belgium), Joensuu (Finland), Warsaw (Poland), Lancaster (Great Britain), Lisbon (Portugal), Bor (Serbia), Arad (Romania), Vancouver (Canada), Chicago (USA).